Kohlberg & Company

Kohlberg & Company is an American private equity firm that focuses on leveraged buyout transactions. Founded by investor Jerome Kohlberg, Jr., the firm invests in a variety of transactions including leveraged carveout, take-private transactions, and acquisitions of privately held companies. The firm focuses on companies facing operational or financial challenges, particularly middle-market companies.

This article is about the middle-market private equity firm founded in 1987 by Jerome Kohlberg. For the large buyout firm founded in 1976, see Kohlberg Kravis Roberts.
Kohlberg & Company
Limited liability company
IndustryPrivate equity
Founded1987 (1987)
HeadquartersMount Kisco, New York, United States
ProductsInvestments, private equity funds
Websitewww.kohlberg.com

History

The firm was founded in 1987,[1] when American businessman and investor Jerome Kohlberg, Jr. resigned from Kohlberg Kravis Roberts & Co. over differences in strategy. Kohlberg did not favor the larger buyouts, including Beatrice Companies in 1985 and Safeway in 1986, highly leveraged transactions or hostile takeovers being pursued increasingly by KKR.[2][3] Instead, Kohlberg chose to return to his roots, acquiring smaller, middle-market companies, and in 1987 he formed Kohlberg & Company along with his son James, who at that time was a KKR executive. Their intent was to concentrate on transactions that could generate returns through revenue growth and operating improvements using only moderate leverage.[2] Jerome Kohlberg retired from Kohlberg & Company in 1994.[4]

In 2006, the firm completed an initial public offering for Kohlberg Capital Corporation (NASDAQ: KCAP) to provide senior debt and mezzanine financing.

Kohlberg has offices based in Mt. Kisco, New York, New York City, and Palo Alto, California.

Funds

By the end of 2007, Kohlberg & Company had raised six private equity funds since its inception, with approximately $3.7 billion of investor commitments. Kohlberg's previous funds totaled $306 million (1988), $165 million (1994), $320 million (1997), $576 million (2000) and $800 million (2004), respectively.

Kohlberg Investors VII, with a valuation of $1.6 billion, closed in April 2013. Kohlberg Investors VIII, with a valuation of $2.2 billion and over 70 investors, closed in December 2016.[1]

Kohlberg also operates a series of debt investment funds under the banner of Katonah Debt Advisors, which was founded in 2000 as Katonah Capital. As of the end of 2007, Katonah Capital, and its successor, Katonah Debt Advisors had raised approximately $3.5 billion through 9 collateralized debt obligation funds.

See also

References
  1. "Kohlberg & Co closes Fund VIII at $2.2bn hard cap". AltAssets. 20 December 2016. Retrieved 2016-12-20.
  2. Sterngold, James (1987-06-19). "BUYOUT PIONEER QUITTING FRAY". New York Times. Retrieved 2020-06-13.
  3. Bartlett, Sarah (1989-08-30). "Kohlberg In Dispute Over Firm". New York Times. Retrieved 2020-06-13.
  4. Antilla, Susan (1994-04-24). "Wall Street; A Scion of the L.B.O. Reflects". New York Times. Retrieved 2020-06-13.
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